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Randi didn't seem to know that "friends only" meant that Callie-- and presumably other friends of those who were tagged-- could see it.

No, she (understandably) didn't know Callie was friends with her sister.

Now she knows that she has to check, despite the text of the feature, thanks to the FB security model.

I think we can all expect an FB permissions update in 1Q13 that touches on this experience of hers.